Stablecoin issuer Circle plans to launch USDC natively on the Ethereum-scaling solution Arbitrum on June 8.
1/ Circle is launching USDC natively on @Arbitrum on June 8th!
Keep scrolling or read the blog to learn more about this launch and how to migrate liquidity from “bridged USDC” to native USDC. https://t.co/tbxSmUvXso
— Circle (@circle) June 1, 2023
In a series of tweets on Thursday, Circle told users that this would be the “official version” of USDC recognized within the Arbitrum ecosystem. Eventually, this version of USDC will replace the one in circulation – a bridged version of USDC that originates from Ethereum.
In line with this plan, Circle will rename the Ethereum-based USDC to “USDC.e” on block explorers and reach out to ecosystem applications to make the same changes on their user interface. Meanwhile, the Arbitrum Foundation will work with the applications on facilitating a smooth transition of liquidity from bridged USDC to native USDC.
The launch of native USDC on Arbitrum is part of a wider goal to expedite transactions through a Cross-Chain Transfer Protocol (CCTP).
The CCTP is a permissionless on-chain utility that burns native USDC on a source chain and mints that same amount of native USDC on a destination chain. The feature is considered a more capital-efficient way to transfer USDC across chains and eliminates the need for the conventional “lock-and-mint bridge” which comes with potential security risks.
“Upon integration into the Arbitrum Bridge, this will enable USDC to move natively to-and-from Ethereum (and other supported chains) in minutes — no more withdrawal delays,” Arbitrum said in a blog post.
At the time of writing, there was around $1.145 billion bridged USDC on Arbitrum. USDC has a market cap of $28 billion, over 95% of which is on Ethereum.